Market Updates »
I can barely believe that it’s already the second month of 2022; time sure does fly! Time is not the only thing currently moving fast, so are Denver homes that are for sale. As we settle into 2022, we are seeing a lot of similarities to the market conditions seen at the peak of 2021. Homes are hitting the market and within hours appointments are reaching triple digit numbers, that’s right, some homes are seeing more than a hundred showings in a single weekend, all of them scheduled shortly after hitting the market.
The craziness doesn’t stop at the number of showings either. We are back in an environment that homes are selling for $50,000 or more over list. In fact, we are starting to see offers nearing $100,00 over list again. Don’t forget just about every contingency is being waived including appraisals, inspections, and even loan objections. So, what is causing this hot seller’s environment you ask?
Great question, and to be honest it’s a pretty simple answer: inventory. The number of new homes coming for sale continue to be at record lows. Today as I write this article, I can see there have only been 923 homes listed in the past 7 days. Typically, we would expect to see upwards of 2500 or more listed each week. With so few homes hitting the market, it’s forcing buyers to compete and make aggressive offers. Is there any sign of end in sight for the battle for a home between buyers?
There is no immediate reason we’d expect to see a huge number of homes flood the market, so new inventory, I believe, will continue to come on slow. However, there is one thing that could cause buyers to hang their hats and get out of the buying game: interest rates. If interest rates were to climb, it would put more pressure on buyers and make homes less affordable. However, we did see a fairly large hike in interest rates in January, roughly .25% to .5%, which was not enough to put pressure on the market. This leaves one asking, how high do interest rates have to go to add enough buying pressure on the market to see the fierce competition settle down between buyers? Perhaps we will know the answer to this question as 2022 continues to fly by. For now, we’re seeing buyers in a mad dash to lock in a historically low interest rate before they are predicted to go up in just a few short months, no matter what it’s costing them on their home purchase.
If you’re curious how today’s Denver real estate market affects your 2022 real estate goals, connect with a TK Homes agent today, and let’s talk about your real estate goals.
Remember, we share a Denver market update blog every month, so come back the first Wednesday of March and see how February played out!
~ Article written by Team Leader & REALTOR®, Trevor Kohlhepp